tv CBS Evening News CBS May 13, 2012 6:00pm-6:30pm PDT
>> glor: tonight the $2 billion shake-up. three top executives now reportedly leaving j.p. morgan chase after its massive trading loss, as the c.e.o. admits a stupid mistake. we'll have the latest. the debate over same-sex marriage, front and center this sunday. bill whitaker, terrell brown are both on the story. starting over, jobs are open but many workers don't have the right training. we'll show you a program trying to change that. and the graduate, tony guida with a story of a war zone refugee who went from janitor to ivy league grad captioning sponsored by cbs this is the "cbs evening news." >> glor: good evening, i'm jeff glor, three executives at the nation's largest bank j.p. morgan chase reportedly are out.
this after the bank revealed on thursday it lost at least $2 billion in risky trades. those stepping down will include the senior executive who oversaw the transaction and two upper traders. today c.e.o. jaime diamon called the trades a terrible, egregious mistake. he also acknowledges the securities and exchange commission is investigating whether rules were broken. >> we know we were sloppy. we know we were stupid. we know there was bad judgment. we don't know if any of that is true. regulators should look, that is their job so we are open to the regulators. they will come to their own conclusion. the strategy we had was barely vetted, it was barely monitored. it should never have happened. >> glor: joining me to discuss this is law professor and former wall street regulator michael greenberger. one question a lot of people are asking is how is it jamie dimon by all accounts a smart man, a savvy banker, how is it he didn't know something like this
was going on? >> these kinds of transactions are as complex as they are risky. and it's very difficult for anybody really to understand what's going on. i think when the end is shown, the trader himself didn't understand what was going on. but these traders are given enormous discretion without proper supervision or understanding. and you end up with these enormous losses. >> glor: speaking of supervision, if dodd frank, the sweeping financial reform bill that was passed in the wake of our last financial crisis if that were fully in place, do you think this would have happened? >> it would not have happened, this kind of trade would have been banned. j.p. morgan chase has been arguing that these kinds of trades should go forward. but the boca rule on dodd frank were implemented the way they were written, these kinds of risky, complex trades would be banned. >> glor: which leads to the question, could this then just happen at another bank next atek? >> of course it could happen at
another bank next week. j.p. morgan chase and jay me die upon are the brightest guys in the room. if they have this problem, god knows how many other people have these problems and this could lead us right back to where we were in 2008. >> glor: michael greenberger, thank you. we also got word of another corporate exit today from yahoo! which said its chief executive scott thompson is leaving in the wake of revelations this his resume was improperly embellished. he claimed a computer science degree he never earned. four days after president obama gave his support for same-sex marriage the issue dominated many political and religious discussions this sunday. bill whitaker tracks it. >> reporter: it was the talk of the sunday talk shows. >> we're going to hear many voices on this issue of gay marriage. >> reporter: there were, of course, classic talking points from republican national committee chairman. ma marriage has to have a definition and we just happen to believe it's between a man and women.
>> reporter: singer and gay activist clay ackin. ng we're going look back and be ashamed we were against it. >> reporter: but for such a hot- button issue the tone and tennor of today's tv debates was not hard right versus hard left. ted olson served in the george w. bush administration. he supports same sex marriage. >> i'm not for gay marriage despite the fact i'm conservative, i'm for gay marriage because i'm conservative. >> reporter: the blurring of political lines reflects how undefined this still is. ever since president barack obama endorsed same-sex marriage last week and mitt romney his presumed republican opponent restated his support for traditional heterosexual marriage, pundits have been trying to predict the political fallout. u.s. political scientist and former g.o.p. strategist. >> the politics in this issue are changing so quickly that neither party really quite understands how to deal with them.
>> reporter: while polls show growing public support for same- sex marriage, the role election battle this november will be in crucial swing states where g.o.p. strategist mark mckinnonon says support is weaker. >> it's arguably-- in the polls done in the last couple days show 23% of independents and 10% of democrats make them let's likely to vote for the president >> reporter: tony perkins of the family research council says the president has energized the republican base. >> i don't think the president did a political-- because if he did i think we go back to the calculator because it was a bad formula. >> reporter: jeff, democrats argue or maybe hope that by election day this issue will be a non-issue. that anybody who wouldn't vote for president obama because of same-sex marriage, probably wouldn't have voted for him anyway. >> glor: bill whitaker, thank you. by and large same-sex marriage is being fought at the state level including in maryland where law taking effect next year is now the focus of a repeal effort. terrell brown has more.
>> same-sex marriage bill. >> reporter: when maryland governor signed the bill to legalize same-sex marriage in maryland, michelle mcger stood behind her. you in the picture. >> yes. >> she and tracy, her partner of 20 years plan to marry in their alme state when it becomes legal in january. >> if something was to happen to me, i would want tracey to be able to collect my death benefits, be able to carry out my last will. >> reporter: but now they face a problem. >> you sign the petition are already. >> reporter: on points of the law are collecting signatures trying to get a referendum on the november ballot to overturn it before it takes effect. so far 30 states have amended their constitution to ban same- sex marriage. in maryland some of the strongest opposition to the law has come from the black community. about 30% of the population. >> god said that in every home there needs to be a representation of his glory
through manhood and femininity. >> this pastor at hope christian baptist church believes same-sex marriage undercuts the strength of family traditions. >> black families in general are on life-support. and the confusion of definitions and all of that will traumatize the black community >> reporter: according to a "washington post" poll, 71% of maryland's white democrats o support same-sex marriage while 53% of black democrat os pose it. >> for me this is fundamentally an issue of the separation of church and state. >> reporter: however the pastor of the baptist church in clinton is one of the few black pastors who support the current law. >> you should not allow our subjective theological understanding prevent other citizens of this country from having equal rights. >> reporter: it is now a waiting game.
>> it's not about the legislation, it's about having the right to be able to marry whomever you love. >> reporter: certainly president obama's endorsement of same-sex marriage adds another layer to the debate beneath of the pastors we spoke to said she will encourage their members to vote against the president in november. >> glor: these are tough times for students of all ages, one in every five federal student loans taken in 1995 has not been repaid. and the government is aggressively suing to recover the money. john bentley reports the situation is getting worse as a new generation graduates in debt and default. >> reporter: with graduation less than a week away, this person should be cramming for finals at the college in the bronx. but his top concern isn't his grades, it's how he is going to repay the student loan. >> i applied for o retail stores
and i have been getting a lot of "we're sorry, we will keep new mind or nothing at all. '>> he did $45,000 in debt and not alone. student loans are now the largest source of consumer debt outpacing credit cards and car loans. 94% of undergraduate students now borrow to pay for college. that's up from 45% in 1993. nearly one in ten borrowers who started paying back their loans in 2009 defaulted within two years. that's double the rate from just four years earlier because the price tag for a college degree keeps going up. >> the cost of tuition here is about $18,000 to 20,000. now every year tuition has gone up. >> reporter: there are many reasons the cost of college has gone up so dramatically. but the main one is the lack of state funding. over the past decade state governments have cut almost 25% out of their spending for higher education, forcing students to
make up the difference. >> does it make you angry this kind of burden is being put on you in your generation. >> yes, it is making me angry. what it is doing is it is stopping people from going out and doing what they love to do. >> reporter: which maybe the hardest lesson to learn for the graduates of 2012. john bentley, cbs news, new york. >> glor: tomorrow california governor jerry brown is expected to call for severe cuts to the state's budget. he has revealed california's deficit this year has skyrocketed from a projected $9 billion to $16 billion. nationwide 29 states in the district of colombia are bleeding red this year, california, illinois, texas, massachusetts and louisiana lead the list. later a graduation day, 19 years in the making. what is the future for afghanistan if the foreign aid stops. and retraining laid off workers for the jobs of tomorrow. those stories when the "cbs evening news" continues.
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>> glor: even with unemployment at 8.1%, as many as a million manufacturing jobs remain unfilled nationwide. according to a study by the accounting firm delight and touch. a shortage of skilled workers is to blame and that's where retraining programs come in. michigan offers a case in point. as a surgical technician, bill mcmillan prepares operating rooms with precision. and helps during surgeries. at age 50, he's also a newby. four years ago mcmilan lost his job in michigan auto industry. so today working in a fast-paced surgical unit is a completely new world. >> don't get caught in the dust because you'll be left behind and everyone will not be happy. >> glor: mcmillan spent two years out of work. his old car industry skills suddenly useless.
>> do you question everything and then there's just realization you got to hit the streets and move on. >> glor: he made his way to the door of doug stites, c.e.o. of capital area michigan works. he has been matching up jobs and people in the lancing area for 30 years. mcmillan got a scholarship for two more years of school. before going back on the ground floor, as a hospital orderly, slowly working his way back. >> i got people at my door scratching at the glass trying to get at the jobs and i got the employers on all my councils saying why can't you train enough people for me. because i got all these jobs i can't fill. unempolyed... >> the longer you are unemployed... >> glor: since the recession hit, his office has seen at least a thousand job-seekers come through his door every day. most still have not adjusted to a new reality. >> we're not going to go back to the days in michigan where if you have a strong back and you can bolt a bumper on we're going to pay you a decent wage. the answer is no. >> glor: the main problem, a
massive skill gap. job openings but not enough properly trained workers to fill them. michigan works has funded training for 1,800 people in the last four years and he says 90% of those find jobs but it is a whole new world and a scary leap. >> it is a daunting task for most of us to face that at our age in life and starting over. >> don't blow it. put your heart into it. and go for it. it can be done. >> glor: mcmillan is making 10% less than de before but hopes to be moving up. stites says job growth prospects in health care and information technology. >> a radical left party is refusing to join a new round of talks tomorrow in greece. talks aimed at forming a coalition government to deal with the country's economic crisis. failure would likely set the stage for another round of elections further rattling world financial markets.
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>> glor: a new atrocity today in mexico's deadly drug wars. the bodies of 49 people were dumped on a highway near monterey. the corpses had been mutilated and stuffed in bags. it is the latest in a string of mass murders as rival dr battle for turf. in china, blind activist chen said is he still waiting for a passport. speaking by phone he also confirmed his nephew had been arrested on attempted murder charges and was in his words savagely beaten. beijing recovering from injuries he sustained in his escape. a former taliban official turned peace envoy was shot dead there kabul while sitting in traffic. he was trying to set up formal talks with insurgents. afghan leaders said today they will take over security in areas that make up 75% of the nation's population in six months. but as allen pizzey in kabul
reports, the transition leaves many afghans in limbo. >> reporter: the polite name for this overcrowded collection of mud huts is informal settlements. 35,000 people live in places like this around kabul alone according to u.n. figures. the people in this one have already been moved once to make way for commercial development. they claim the land they were living on was taken over by corrupt officials for their own ends and now they are being told to move again. $60 billion worth of humanitarian aid has been poured into afghanistan over the last ten years. but much of it has been ear- marked for crises. and since the problems in the squatter camps are chronic and long-standing, they don't qualify for it. "the government not only doesn't care about us," he says, "they want to destroy us." the world's bank has warned that a sudden withdrawal of both foreign troops and aid money could quote shock the country's fragile economy and pose a serious threat to security.
there's only one way to avoid that, according to rahala of the afghan investment support agency. >> reporter: more than a third of afghans live in absolute poverty and most of the others aren't much better off. the population of kabul has more than tripled to $5 million over the past ten years, as people flee rural areas looking for both security and jobs. there are no hard be employment figures but the lack of opportunity is obvious. which is where the taliban comes in. it pays fighters up to $20 a day. a serious reason to consider what next for afghanistan's economy when the u.s. and other troops leave. allen pizzey, cbs news, kabul. >> jeff: ahead, the graduate with the hardest won diploma of all. that story is next. measure commitment by what's getting done. the twenty billion dollars bp committed
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>> bachelor of arts. >> reporter: graduated from columbia university today. >> congratulations. >> reporter: his diploma, validation of a life altering choice, books over blood. >> whom should i kill, somebody who yesterday i called a brother? now he is an enemy. >> reporter: his country yugoslavia was a killing field in 1992. civil war, ethnic cleansing. he could either fight for a cause he didn't believe in, or flee. he escaped to new york. he chose it not just as refuge but as renaissance. >> if god had not given me some nice appearance, have given me a head, have given me a heart, and i can better myself. >> he started at the bottom, cleaning bathrooms. but these were ivy league bathrooms. he chose a janitor's job at columbia university because it came with 14 free credit hours a
year. >> i do believe that education, good education is very important, not just for individuals, for one's self but for society as a whole. >> first he had to learn english with his full-time job, it took seven years. then he enrolled in columbia's classics program. studying greek and latin by day, scrubbing toilets by night. >> he is a remarkable human being. >> reporter: garrett williams taught him and supervised his thesis on the roman philosopher seneca. the professor saw a man dedicated to knowledge. >> he would ask one question and then we ask another question and then a third question. his intellectual curiosity was very broad. >> reporter: another 12 years of work study lead to this moment, not just a crowning but also a passage. he plans to get a masters, even a ph.d. one day he hopes to teach. >> there is a saying seneca said, while you teach, you learn.
>> reporter: 19 years of hard work and learning behind him he graduated from columbia university today. with honors. tony guida, cbs news, new york. >> jeff: that is the "cbs evening news" tonight, later on cbs, "60 minutes." i'm jeff glor, cbs news in new york. scott pelly will be here tomorrow. good night. captioning sponsored by cbs captioned by media access group at wgbh access.wgbh.org captioned by media access group at wgbh access.wgbh.org